China Offers Tax Incentives to Persuade U.S. Companies to Staybr 28, 2017br BEIJING — China said on Thursday that it would temporarily exempt foreign companies from paying tax on their earnings, a bid tobr keep American businesses from taking their profits out of China following Washington’s overhaul of the United States tax code.br Jake Parker, vice president for China operations at the U.S.-China Business Council, said some of his member companies had already saidbr that they would seek to repatriate China earnings to the United States with the tax code change, and were considering doing so quickly to minimize the risk of being subject to capital controls.br China said that promote the growth of foreign investment, improve the quality of foreign investmentbr and encourage overseas investors to continuously expand their invesbr The newly approved tax incentives in the United States could appeal to companiesbr that are frustrated by China’s rising labor costs, ambitious local competitors and tangled legal systems, or those that would rather spend their money at home or elsewhere.br In particular, the new corporate tax rate is sharply lower, moving the country from having among the highest corporate tax rates to among the lowest.br He noted that the impact of the changes overseas "cannot be overlooked." The American tax overhaul has been promoted by President Trumpbr and other Republican leaders as a move to make the United States more competitive globally.